Thursday, October 7, 2010
Speech
ADDRESS OF PROF. K. V. THOMAS, MINISTER OF STATE FOR AGRICULTURE, CONSUMER AFFAIRS AND FOOD AND PUBLIC DISTRIBUTION, GOVERNMENT OF INDIA AT THE OPENING CEREMONY OF THE ANRPC ANNUAL RUBBER CONFERENCE 2010,
6 OCTOBER, KOCHI, INDIA
Mr. Le Quang Thung, Acting Chairman, Vietnam Rubber Group & Chairman of ANRPC,
Prof. Djoko S. Damardjati, Secretary-General, ANRPC
Mr Sajen Peter IAS, Chairman, Rubber Board,
Member Government Representatives of ANRPC countries,
Members of Rubber Board,
Distinguished Delegates and
Ladies & Gentlemen,
As the proud representative of Kochi in Parliament, I am happy to see the city playing host to yet another international conference. Kochi has been a bustling centre of commercial activities for centuries, with more than 2000 years old trade links with world markets. The city is one of the finest natural harbours and is located scenically between the Arabian Sea and backwaters. Muziris in the neighbourhood of Kochi, a famous and prosperous seaport in ancient times, was the centre of world spices trade for centuries.
Like other natural rubber producing countries, cultivation of rubber began in India also only a century ago. India is a vast country and the area under major plantation crops accounts only for one per cent of the gross cropped area. However, the share of contribution of the plantation sector to national agricultural GDP is almost two per cent, reflecting the relatively high extent of value of output. Among the plantation crops, rubber accounts for 38 per cent of the planted area. However, India has only a narrow belt of regions suitable for rubber cultivation and the agroclimatic conditions even in these regions are sub-optimal. However, the sector has achieved substantial progress over the decades in production and productivity. From 2006 India has been recording the highest productivity in rubber in the world. This has been made possible by decades of concerted efforts at research and extension fronts and with the benefit of having a highly receptive and enterprising farming community.
Natural rubber has emerged as an important industrial raw material in terms of its essentiality in critical products, versatility in commercial use and potential for value addition. Though the main use of rubber is in the tyre sector, it is being used in manufacturing around 50,000 products most of which are indispensable in modern life, ranging from erasers to aircraft tyres. Currently, NR accounts for 44 per cent of elastomer consumption in the world. NR is also an eco-friendly product and rubber plantations have a green image. Processed timber obtained from rubber plantations while replanting substantially contributes to the conservation of tropical forests.
The share of Asia in world NR production remained above 90 per cent ever since the dominance of plantation rubber though the relative shares of Asian countries in world NR production have changed considerably during the recent decades. The relative share of Asia in consumption of rubber increased steeply from 19 per cent in 1960 to 75 per cent in 2009 at the cost of North America and Western Europe. This has been on account of spectacular growth in consumption in China and India. The share of China in world NR consumption was as high as 37 per cent in 2009. Of late, China has ousted the US and emerged as the world’s largest vehicle market with sales touching 13.5 million units. Consumption of NR in other rubber producing countries like Malaysia, Thailand, Indonesia and Vietnam also has improved in the recent decades.
I understand that the eleven member countries of the ANRPC together account for 92 per cent of the world production of NR. In the present globalised world, competition is the watchword of all economic activities. Yet, the overwhelming role of competition has not undermined the importance of cooperation among countries in commodity sectors. During the last four decades, the ANRPC has contributed substantially to the development of NR industry in the member countries. There has been commendable progress in research and extension activities in NR sector, resulting in significant improvements in productivity and acceleration in NR production leading to improvement in the living standards of rubber growers. Our achievements in the NR sector owe to a great extent to the foresight and dedicated efforts of our predecessors among policy makers, scientists, extension workers and growers.
The Annual Rubber Conference of ANRPC provides a unique opportunity for all rubber industry stakeholders around the world to come together to listen to industry experts and officials from ANRPC member countries. I am happy to note the universal relevance of the theme of today’s Conference. Planning starts with an awareness of where we stand. Information on the current status of rubber industry is thus an essential prerequisite for exploring where we want to go and also understanding the constraints on the road ahead. A progressive planner takes every constraint as a challenge. It is the strategy adopted that transforms a challenge into an opportunity. Deliberations on challenges, opportunities and strategies for development of NR industry in the next decade shall contribute to devise appropriate strategies.
Most of the plantations in South and Southeast Asian countries were developed extensively during the first half of the last century, mainly in the estate sector. During the second half of the last century the share of small growers in the plantations increased on account of the operational divisibility of some crops, changes in the political context and proactive interventions of developmental agencies. Currently, NR is predominantly a smallholder’s crop in all the major producing countries. The challenges being faced by small growers are distinct irrespective of the crop. It is important that the strategies for development of rubber industry are small grower friendly. The research and extension components of the strategies shall be mainly oriented towards the issues in the smallholding sector.
Another important challenge confronting the NR sector is the growing shortage of labour. This has to be addressed by exploring possibilities of developing labour saving cultural and harvesting practices and mechanisation.
There is a growing concern on climate change and its impact on crop production. Global warming, weather instability and occurrence of unusual and extreme weather events are the major physical dimensions of climate change. Research in rubber plantation sector shall focus on the impact of climate change on rubber cultivation and strategies to mitigate the possible adverse impact.
I would like to re-emphasise the eco-friendliness of NR. People all over the world are becoming more and more aware of environmental issues, and this gets reflected in increasing demand for environment-friendly products even at premium prices. The plans for the next decade should therefore cover strategies to capitalise on the environment-friendliness of NR too. There shall be collective efforts among the NR producing countries to take advantage of Clean Development Mechanism under the Kyoto Protocol to UNFCCC.
Equally important is value addition for rubber in the producing countries themselves. I understand that the share of Asia and major producing countries in NR consumption has increased over time, especially since mid-1980s. There shall be earnest efforts to enhance NR consumption in producing countries in the coming years.
The success of a Conference is determined mainly by the content of the presentations and the extent of participation. From the brochure, it is obvious that it is a tightly scheduled programme covering all ANRPC member countries and presentations on special topics by invited speakers. And I am pleased to observe the wide and diverse participation of rubber industry stakeholders from different parts of the world. Wishing the deliberations in the Conference every success, I declare the ‘ANRPC Annual Conference 2010’ open.
____________
6 OCTOBER, KOCHI, INDIA
Mr. Le Quang Thung, Acting Chairman, Vietnam Rubber Group & Chairman of ANRPC,
Prof. Djoko S. Damardjati, Secretary-General, ANRPC
Mr Sajen Peter IAS, Chairman, Rubber Board,
Member Government Representatives of ANRPC countries,
Members of Rubber Board,
Distinguished Delegates and
Ladies & Gentlemen,
As the proud representative of Kochi in Parliament, I am happy to see the city playing host to yet another international conference. Kochi has been a bustling centre of commercial activities for centuries, with more than 2000 years old trade links with world markets. The city is one of the finest natural harbours and is located scenically between the Arabian Sea and backwaters. Muziris in the neighbourhood of Kochi, a famous and prosperous seaport in ancient times, was the centre of world spices trade for centuries.
Like other natural rubber producing countries, cultivation of rubber began in India also only a century ago. India is a vast country and the area under major plantation crops accounts only for one per cent of the gross cropped area. However, the share of contribution of the plantation sector to national agricultural GDP is almost two per cent, reflecting the relatively high extent of value of output. Among the plantation crops, rubber accounts for 38 per cent of the planted area. However, India has only a narrow belt of regions suitable for rubber cultivation and the agroclimatic conditions even in these regions are sub-optimal. However, the sector has achieved substantial progress over the decades in production and productivity. From 2006 India has been recording the highest productivity in rubber in the world. This has been made possible by decades of concerted efforts at research and extension fronts and with the benefit of having a highly receptive and enterprising farming community.
Natural rubber has emerged as an important industrial raw material in terms of its essentiality in critical products, versatility in commercial use and potential for value addition. Though the main use of rubber is in the tyre sector, it is being used in manufacturing around 50,000 products most of which are indispensable in modern life, ranging from erasers to aircraft tyres. Currently, NR accounts for 44 per cent of elastomer consumption in the world. NR is also an eco-friendly product and rubber plantations have a green image. Processed timber obtained from rubber plantations while replanting substantially contributes to the conservation of tropical forests.
The share of Asia in world NR production remained above 90 per cent ever since the dominance of plantation rubber though the relative shares of Asian countries in world NR production have changed considerably during the recent decades. The relative share of Asia in consumption of rubber increased steeply from 19 per cent in 1960 to 75 per cent in 2009 at the cost of North America and Western Europe. This has been on account of spectacular growth in consumption in China and India. The share of China in world NR consumption was as high as 37 per cent in 2009. Of late, China has ousted the US and emerged as the world’s largest vehicle market with sales touching 13.5 million units. Consumption of NR in other rubber producing countries like Malaysia, Thailand, Indonesia and Vietnam also has improved in the recent decades.
I understand that the eleven member countries of the ANRPC together account for 92 per cent of the world production of NR. In the present globalised world, competition is the watchword of all economic activities. Yet, the overwhelming role of competition has not undermined the importance of cooperation among countries in commodity sectors. During the last four decades, the ANRPC has contributed substantially to the development of NR industry in the member countries. There has been commendable progress in research and extension activities in NR sector, resulting in significant improvements in productivity and acceleration in NR production leading to improvement in the living standards of rubber growers. Our achievements in the NR sector owe to a great extent to the foresight and dedicated efforts of our predecessors among policy makers, scientists, extension workers and growers.
The Annual Rubber Conference of ANRPC provides a unique opportunity for all rubber industry stakeholders around the world to come together to listen to industry experts and officials from ANRPC member countries. I am happy to note the universal relevance of the theme of today’s Conference. Planning starts with an awareness of where we stand. Information on the current status of rubber industry is thus an essential prerequisite for exploring where we want to go and also understanding the constraints on the road ahead. A progressive planner takes every constraint as a challenge. It is the strategy adopted that transforms a challenge into an opportunity. Deliberations on challenges, opportunities and strategies for development of NR industry in the next decade shall contribute to devise appropriate strategies.
Most of the plantations in South and Southeast Asian countries were developed extensively during the first half of the last century, mainly in the estate sector. During the second half of the last century the share of small growers in the plantations increased on account of the operational divisibility of some crops, changes in the political context and proactive interventions of developmental agencies. Currently, NR is predominantly a smallholder’s crop in all the major producing countries. The challenges being faced by small growers are distinct irrespective of the crop. It is important that the strategies for development of rubber industry are small grower friendly. The research and extension components of the strategies shall be mainly oriented towards the issues in the smallholding sector.
Another important challenge confronting the NR sector is the growing shortage of labour. This has to be addressed by exploring possibilities of developing labour saving cultural and harvesting practices and mechanisation.
There is a growing concern on climate change and its impact on crop production. Global warming, weather instability and occurrence of unusual and extreme weather events are the major physical dimensions of climate change. Research in rubber plantation sector shall focus on the impact of climate change on rubber cultivation and strategies to mitigate the possible adverse impact.
I would like to re-emphasise the eco-friendliness of NR. People all over the world are becoming more and more aware of environmental issues, and this gets reflected in increasing demand for environment-friendly products even at premium prices. The plans for the next decade should therefore cover strategies to capitalise on the environment-friendliness of NR too. There shall be collective efforts among the NR producing countries to take advantage of Clean Development Mechanism under the Kyoto Protocol to UNFCCC.
Equally important is value addition for rubber in the producing countries themselves. I understand that the share of Asia and major producing countries in NR consumption has increased over time, especially since mid-1980s. There shall be earnest efforts to enhance NR consumption in producing countries in the coming years.
The success of a Conference is determined mainly by the content of the presentations and the extent of participation. From the brochure, it is obvious that it is a tightly scheduled programme covering all ANRPC member countries and presentations on special topics by invited speakers. And I am pleased to observe the wide and diverse participation of rubber industry stakeholders from different parts of the world. Wishing the deliberations in the Conference every success, I declare the ‘ANRPC Annual Conference 2010’ open.
____________
Speeches
SPEECH OF HON’BLE MINISTER OF STATE FOR AGRICULTURE, CONSUMER AFFAIRS, FOOD & PUBLIC DISTRIBUTION, GOVT. OF INDIA TO BE DELIVERED DURING COMMONWEALTH BUSINESS FORUM 2010 ON 5TH OCTOBER, 2010 AT TAJ PALACE HOTEL, NEW DELHI.
I welcome all participants of Commonwealth Business Forum 2010.
It gives me great pleasure to address you on this momentous occasion. The Commonwealth Games, the third largest multi-sport event in the world, have taken off to a glorious start, the athletes are busy with their events, and spectators are flocking to the venues in big numbers. I felicitate all of you on your participation in the Games and wish your sports teams all the best for the coming days.
Sports and business have now become inseparable. The symbiotic relationship between sports and business is witnessed in the large gathering present here today. The opportunities for business during sports events are very large. In Delhi itself, the estimates for the city infrastructure, sports venues and other necessities stand at close to $10 billion. It is estimated that the Games will have an economic outcome of close to $5 billion over the next few years and succeed in adding 2.5 million new jobs. In fact, we will be gaining from this event for the next many years.
Most important, the Games will bring a new sense of confidence and a new brand image for India as a global player. Despite some glitches, overall the facilities are world-class and have brought new standards to Indian infrastructure, Indian sports and Indian services. India has leapfrogged the transition from low levels of quality to global benchmarks and this Game is a sure indication of this.
Our close friends in the Commonwealth grouping are particularly well placed to reap the benefits of India’s emergence on the global economic stage. From our shared histories and experiences, we enjoy mutual friendship and respect. The institutional frameworks of Commonwealth countries such as democracy, rule of law, media freedom, administrative and bureaucratic procedures and education systems are similar, leading to greater understanding and ease of communication.
In fact, the commonwealth members have lent special significance to maintaining the institutions left behind by the British which are now serving us well. In particular, the emergence of English as the language of the world owes much to its usage by the Commonwealth’s countries over the years. This common means of communication is a major tool for our cooperation and partnership and is the very foundation of our grouping.
With these advantages, the organization of the Games in India draws attention to the business partnerships that can be strengthened and deepened among Commonwealth countries during its course. I am grateful to the Commonwealth Business Forum for giving me this opportunity to address you and I felicitate the Organizing Committee and the Confederation of Indian Industry for organizing this event.
Let me outline some of the excellent opportunities that the Indian economy offers to our friends in the Commonwealth.
The Indian economy is expected to grow by over 8.5% this year. A recent Economist cover story says that India will overtake China in growth over the next three-four years to become the fastest-growing major economy. The Indian economy recovered easily from the global economic crisis which dented our progress for two years. Yet the pace of growth remained at over 6.5% for each of the two years. This was due to prudent reforms, calibrated policies of liberalization and rapid action in terms of stimulus and other measures.
The Government took unprecedented action of pumping purchasing power into the hands of the poor where it has the greatest multiplier effect. This kickstarted a fresh round of spending and boosted the manufacturing sector. Even while India experienced the worst drought in 30 years and agriculture production stagnated, the manufacturing and services sector emerged to take up the slack and become the growth drivers of the economy.
This year, the Indian economy will gain considerably from the performance of the monsoon. Although the heavy rains disrupted final preparations for the CWG last month, they were good news for the planting season. We expect agriculture growth to be robust this year, and this will power GDP for the year.
While much of agriculture is regulated to protect the marginal farmer, there have been excellent examples of businesses doing well in the sector. Companies have invested in the supply chain, in contract farming, in agricultural implements and machinery, and in financial services for farmers. Many more openings are available in the downstream sectors of food processing, packaging, refrigeration, etc.
The business opportunities derived from agriculture in India are enormous and not sufficiently exploited by overseas businesses. India has 14 agri zones and is capable of producing a wide variety of grains, fruits and vegetables. The rising share of horticultural products as compared to grains in the basket of agricultural produce attests to the changing lifestyles of Indian consumers.
However, India faces a large technology deficit in terms of agriculture productivity. Our yields are far lower per unit of area than that of other countries. This has implications for companies in technology, agricultural implements and machinery, agri inputs such as fertilizers, biotechnology and other areas. The absorption capacity of the Indian farming sector for such technology and advanced equipment is high. Just as the Commonwealth Games are an example of India leapfrogging technology usage, Indian agriculture too can jump into more technology-intensive methods of farming within a short time.
In fact, the compulsions of food security for a rising population with increasing spending power imply that such technology jumps are not just required but are imperative for the future development of the country.
The good agriculture growth also translates into increased discretionary spending by farmers and ancillary sectors of the rural economy. In fact, rural demand has become the prime mover of domestic demand in India. While other countries are struggling to sustain their levels of domestic demand given the high rates of unemployment, India is gaining from robust and healthy expenditures.
The manufacturing and services sectors are likely to derive high advantage from this growth. Already we are witnessing sectors such as automotives, consumer durables and related sectors benefiting from the dynamic and thriving rural markets. Companies both domestic and multinational are reconfiguring their marketing strategies to address rural markets. Value and marketing chains that reach down to the farthest villages are proving to be the most profitable.
India’s infrastructure mission will be a major source of growth. In the five years from 2007 to 2012, the country would have significantly stepped up its infrastructure spending to $550 billion. In the next five years, it is estimated that India will be spending $1 trillion in the sector.
We have seen the power of the infrastructure sector in areas such as roads and highways and telecommunications, which have revitalized the economy. Current deficits in the infrastructure sector are being addressed through dedicated policies in the realm of regulation, financing, and administration. Public private partnership is a major plank of our infrastructure engagement and much investment is expected to come from overseas sources.
In services, India’s export growth has been spectacular. Today, the country is the largest exporter of software services and a major player in business and professional services. Service exports have crossed $100 billion and continue to gain pace, despite the economic conditions. As the world shifts increasingly to a knowledge economy, India will emerge as a key participant, given its strong educational output.
I would like to reiterate that India faces considerable challenges in its growth aspirations. Poverty remains high, and human development indicators are poor. We need to move rapidly on spreading growth to all sections of society. Health and education need to be stressed. Global economic conditions will also be a major factor in our growth, and it is important that global sources of India’s growth are not constrained by protectionist forces. However, I must reiterate that the Indian government is addressing the challenges comprehensively and I have no doubt that challenges can be converted into opportunities.
In our march towards development, we look to our Commonwealth friends for support and partnership. Your collaboration in this existing venture is invaluable to our development aspirations.
Ladies and gentlemen, a new India is on the ascendance. Just as the world’s largest helium balloon took to the Indian skies day before yesterday, we will see transformational changes in the Indian economy. A growth rate of over 10 percent could well be sustained in the next few decades, turning the country into a powerhouse for the global economy. This is the time to be in India, this is the time to invest in India, and this is the time to partner India’s development saga.
Thank you.
I welcome all participants of Commonwealth Business Forum 2010.
It gives me great pleasure to address you on this momentous occasion. The Commonwealth Games, the third largest multi-sport event in the world, have taken off to a glorious start, the athletes are busy with their events, and spectators are flocking to the venues in big numbers. I felicitate all of you on your participation in the Games and wish your sports teams all the best for the coming days.
Sports and business have now become inseparable. The symbiotic relationship between sports and business is witnessed in the large gathering present here today. The opportunities for business during sports events are very large. In Delhi itself, the estimates for the city infrastructure, sports venues and other necessities stand at close to $10 billion. It is estimated that the Games will have an economic outcome of close to $5 billion over the next few years and succeed in adding 2.5 million new jobs. In fact, we will be gaining from this event for the next many years.
Most important, the Games will bring a new sense of confidence and a new brand image for India as a global player. Despite some glitches, overall the facilities are world-class and have brought new standards to Indian infrastructure, Indian sports and Indian services. India has leapfrogged the transition from low levels of quality to global benchmarks and this Game is a sure indication of this.
Our close friends in the Commonwealth grouping are particularly well placed to reap the benefits of India’s emergence on the global economic stage. From our shared histories and experiences, we enjoy mutual friendship and respect. The institutional frameworks of Commonwealth countries such as democracy, rule of law, media freedom, administrative and bureaucratic procedures and education systems are similar, leading to greater understanding and ease of communication.
In fact, the commonwealth members have lent special significance to maintaining the institutions left behind by the British which are now serving us well. In particular, the emergence of English as the language of the world owes much to its usage by the Commonwealth’s countries over the years. This common means of communication is a major tool for our cooperation and partnership and is the very foundation of our grouping.
With these advantages, the organization of the Games in India draws attention to the business partnerships that can be strengthened and deepened among Commonwealth countries during its course. I am grateful to the Commonwealth Business Forum for giving me this opportunity to address you and I felicitate the Organizing Committee and the Confederation of Indian Industry for organizing this event.
Let me outline some of the excellent opportunities that the Indian economy offers to our friends in the Commonwealth.
The Indian economy is expected to grow by over 8.5% this year. A recent Economist cover story says that India will overtake China in growth over the next three-four years to become the fastest-growing major economy. The Indian economy recovered easily from the global economic crisis which dented our progress for two years. Yet the pace of growth remained at over 6.5% for each of the two years. This was due to prudent reforms, calibrated policies of liberalization and rapid action in terms of stimulus and other measures.
The Government took unprecedented action of pumping purchasing power into the hands of the poor where it has the greatest multiplier effect. This kickstarted a fresh round of spending and boosted the manufacturing sector. Even while India experienced the worst drought in 30 years and agriculture production stagnated, the manufacturing and services sector emerged to take up the slack and become the growth drivers of the economy.
This year, the Indian economy will gain considerably from the performance of the monsoon. Although the heavy rains disrupted final preparations for the CWG last month, they were good news for the planting season. We expect agriculture growth to be robust this year, and this will power GDP for the year.
While much of agriculture is regulated to protect the marginal farmer, there have been excellent examples of businesses doing well in the sector. Companies have invested in the supply chain, in contract farming, in agricultural implements and machinery, and in financial services for farmers. Many more openings are available in the downstream sectors of food processing, packaging, refrigeration, etc.
The business opportunities derived from agriculture in India are enormous and not sufficiently exploited by overseas businesses. India has 14 agri zones and is capable of producing a wide variety of grains, fruits and vegetables. The rising share of horticultural products as compared to grains in the basket of agricultural produce attests to the changing lifestyles of Indian consumers.
However, India faces a large technology deficit in terms of agriculture productivity. Our yields are far lower per unit of area than that of other countries. This has implications for companies in technology, agricultural implements and machinery, agri inputs such as fertilizers, biotechnology and other areas. The absorption capacity of the Indian farming sector for such technology and advanced equipment is high. Just as the Commonwealth Games are an example of India leapfrogging technology usage, Indian agriculture too can jump into more technology-intensive methods of farming within a short time.
In fact, the compulsions of food security for a rising population with increasing spending power imply that such technology jumps are not just required but are imperative for the future development of the country.
The good agriculture growth also translates into increased discretionary spending by farmers and ancillary sectors of the rural economy. In fact, rural demand has become the prime mover of domestic demand in India. While other countries are struggling to sustain their levels of domestic demand given the high rates of unemployment, India is gaining from robust and healthy expenditures.
The manufacturing and services sectors are likely to derive high advantage from this growth. Already we are witnessing sectors such as automotives, consumer durables and related sectors benefiting from the dynamic and thriving rural markets. Companies both domestic and multinational are reconfiguring their marketing strategies to address rural markets. Value and marketing chains that reach down to the farthest villages are proving to be the most profitable.
India’s infrastructure mission will be a major source of growth. In the five years from 2007 to 2012, the country would have significantly stepped up its infrastructure spending to $550 billion. In the next five years, it is estimated that India will be spending $1 trillion in the sector.
We have seen the power of the infrastructure sector in areas such as roads and highways and telecommunications, which have revitalized the economy. Current deficits in the infrastructure sector are being addressed through dedicated policies in the realm of regulation, financing, and administration. Public private partnership is a major plank of our infrastructure engagement and much investment is expected to come from overseas sources.
In services, India’s export growth has been spectacular. Today, the country is the largest exporter of software services and a major player in business and professional services. Service exports have crossed $100 billion and continue to gain pace, despite the economic conditions. As the world shifts increasingly to a knowledge economy, India will emerge as a key participant, given its strong educational output.
I would like to reiterate that India faces considerable challenges in its growth aspirations. Poverty remains high, and human development indicators are poor. We need to move rapidly on spreading growth to all sections of society. Health and education need to be stressed. Global economic conditions will also be a major factor in our growth, and it is important that global sources of India’s growth are not constrained by protectionist forces. However, I must reiterate that the Indian government is addressing the challenges comprehensively and I have no doubt that challenges can be converted into opportunities.
In our march towards development, we look to our Commonwealth friends for support and partnership. Your collaboration in this existing venture is invaluable to our development aspirations.
Ladies and gentlemen, a new India is on the ascendance. Just as the world’s largest helium balloon took to the Indian skies day before yesterday, we will see transformational changes in the Indian economy. A growth rate of over 10 percent could well be sustained in the next few decades, turning the country into a powerhouse for the global economy. This is the time to be in India, this is the time to invest in India, and this is the time to partner India’s development saga.
Thank you.
Monday, September 20, 2010
Animal Husbandary
Speech of Hon’ble MOS (Agriculture) to be delivered while inaugurating the 2nd International Summit-cum-Exhibition on Processed Food Agribusiness and Beverages
I am happy to note that this special session is being organised to identify programmes, strategies and partnerships to improve production and quality in the field of processed food, agribusiness and beverages.
You all know that agriculture sector is vital for food security of the country. It is the principal source of livelihood for more than 58% of the population but its contribution to the national GDP is only about 18%. This structural imbalance and mismatch between income generation in the farm sector visa-à-vis and non-farm sector needs to be addressed immediately. I earnestly hope that the deliberations of this session will provide some direction towards this end.
Let me briefly outline the various initiatives taken by the Government for the development of Agriculture sector with special emphasis on famers’ income and inclusive growth:
1. GROWTH RATE: The Government has taken a number of initiatives to give further boost to agricultural sector. While the global economy had been reeling under recession in the last one year and our farmers had been facing vagaries of weather, the average growth rate of agriculture sector was more than 4% during the last 4 years. I am grateful to the farming community of India for sustaining this growth and for providing food security to the nation.
2. MINIMUM SUPPORT PRICE: In order to make agriculture a remunerative vocation on a sustainable basis, substantial increase in the MSP of major cereals ranging from 49% to 78% was provided during the last 5 years. MSPs of pulses & oilseeds were enhanced by up to 83% during the same period.
During the last five years Government has mostly been accepting the recommendations of Commission for Agricultural Costs and Prices (CACP) and in some cases has also announced higher prices along with bonus.
3. OUTLAY FOR AGRICULTURE / INVESTMENT IN AGRICULTURE: As a result of progressive steps taken by the Government during the last 5 years in agriculture & sectors, the declining trend has been reversed, and the share of public investment in Gross Capital Formation in agriculture and allied sectors has been going up. I am glad to inform you that during 2004-05 to 2007-08, the total investment in agriculture increased in the range of 8% to 14.2% per annum. The public sector investment increased faster in the range of 17.6 % to 22.5%. However, this process of investment in agriculture both in public and private sector needs to be accelerated in the coming years.
With a view to increase the investment in agriculture, two major programmes, Rashtriya Krishi Vikas Yojana with a Plan outlay of Rs.25,000 crores and National Food Security Mission with a Plan outlay of about Rs.4900 crores were launched to incentivize investments by the States and the farmers.
4. NATIONAL FOOD SECURITY MISSION (NFSM): Food security at national and at the household level is of paramount importance for this Government. With a view to enhance production of foodgrains to meet increasing demand on account of burgeoning population, National Food Security Mission (NFSM) is being implemented in 312 identified districts of 17 States from Rabi 2007-08. An additional production of 20 million tonnes of foodgrains, comprising 10 million tonnes of rice, 8 million tonnes of wheat and 2 million tonnes of pulses by the end of Eleventh Plan (2011-12) has been targetted.
5. RASHTRIYA KRISHI VIKAS YOJNA (RKVY): Rashtriya Krishi Vikas Yojana is a unique scheme in which the States have been given the responsibility of planning and implementing agriculture and allied sectors (including animal husbandry, dairy and fisheries) related programmes most suited to their regions. It envisages the concept of District Agricultural Plan and State Agricultural Plan thereby giving the required flexibility to the States.
6. NATIONAL HORTICULTURE MISSION (NHM): The National Horticulture Mission is being implemented since the year 2005, with requisite backward and forward linkages and an end-to-end approach covering research, production, post-harvest management, processing and marketing, with active participation of all stakeholders. Since inception of the Scheme, about 12.61 lakh hectares (ha.) area has been brought under new gardens, 2.06 lakh ha. of old senile plantations rejuvenated and Integrated Pest Management/Integrated Nutrient Management has taken up in 5.73 lakh ha. Under the post harvest management component, 1108 Pack Houses, 109 Cold Storage Units, 8 Wholesale Markets and 51 Rural Markets have been set up.
7. MACRO MANAGEMENT OF AGRICULTURE (MMA): Macro Management of Agriculture (MMA) aims at all round development in agriculture through Work Plans prepared by States. MMA Scheme provides the states to choose among various interventions based on the Work Plan finalized in an interactive mode to supplement and complement the States’ efforts in the agriculture sector. Under the scheme, 90% of the outlay is provided by the Central Government.
8. NATIONAL PROJECT ON MANAGEMENT OF SOIL HEALTH AND FERTILITY (NPMSF): In order to promote judicious and balanced use of chemical fertilizers, there is an urgent need for expanding soil testing facilities in the country with a provision for micro-nutrient testing facility. A new Scheme, namely, “National Project on Management of Soil Health and Fertility” (NPMSF) has been introduced during 2008-09 under which 250 mobile & 500 static Soil Testing Labs and 70 Fertilizer Quality Control Labs were established. Upgradation and strengthening of existing labs also is proposed to be done NPMSF.
10. ORGANIC FARMING: We are committed to giving thrust to conservation agriculture to ensure sustainability of production levels while enhancing quality of the output. Therefore, we are promoting use of bio-fertilizers, bio-pesticides, bio-insecticides and organic farming under various components of National Project on Organic Farming and National Horticulture Mission. Due to these efforts of the Government, which have been well received by the farmers, the total certified area under organic farming (including area under conversion) has increased from 42000 ha. in 2003-04 to more than 10 lakh hectares last year.
11. MICRO IRRIGATION: With a view to incentivize efficient use of available water resources, a Centrally Sponsored Scheme on Micro Irrigation was launched in 2006. The use of micro irrigation systems results in increase in crop yield, reduction in fertilizer intake, labour cost etc. Since inception of the Scheme, about 13.49 lakh ha. has been covered under drip and sprinkler system upto March, 2009.
12. EXTENSION ACTIVITIES: Extension activities are essentially in the domain of the State Governments and the Central Government is providing support to their efforts through various programmes. A scheme “Support to State Extension Programme for Extension Reforms” was launched in 2005. An autonomous body Agriculture Technology Management Agency (ATMA) is set up at the district level with active participation of farmers, farmer groups, NGOs, Krishi Vikash Kendras, Panchayati Raj Institutions and other stakeholders operating at district level and below. A total number of 586 rural districts have been covered under the scheme in 27 states and 2 Union Territories. A vast network of 558 Krishi Vigyan Kendras (KVKs) for dissemination of technology through demonstration has been established. Besides this ATMA scheme, 3 more schemes for agriculture extension viz. Agri Clinics and Agri Business Centres, Mass Media Support to Agriculture and Support to Central Institutions are also being implemented.
13. WAREHOUSING AND COLD-CHAIN: It is widely recognized that the investment in warehousing and cold-chain in the country is inadequate. In effect, the investment in this sector has not kept pace with the increase in production both of foodgrains and horticulture. It is also recognized that investment by the private sector in this regard is very important. Therefore, to incentivize investment by the private sector in warehousing and cold-chain the Finance Minister in his budget speech has announced investment-linked tax incentives to the businesses of setting up and operating ‘cold chain’, warehousing facilities for storing agricultural produce and the business of laying and operating cross country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle. Under this method, all capital expenditure, other than expenditure on land, goodwill and financial instruments will be fully allowable as deduction. With this announcement, it is expected that the warehousing and cold-chain infrastructure in this country will get a boost and the farmers get the benefit of this investment by reducing their losses in handling and transportation. We have also issued guidelines for setting up Terminal Market Complexes in Public Private Partnership (PPP) mode by providing subsidy @ up to 40% of the eligible capital cost with a ceiling of Rs.50 crores per market.
14. CREDIT FLOW: In order to improve the flow of credit and to ameliorate condition of distressed farmers, the Government of India had announced a special farm credit package on 18.06.2004. As a result, total credit flow has increased from Rs.86,981 crores in 2003-04 to Rs.2,87,149 crores in 2008-09 and is further targeted to increase to Rs.3,25,000 crores in 2009-10. In the Budget 2009-10, an additional interest subvention of 1% has been proposed for the farmers who pay their loans in time.
15. CROP INSURANCE: National Agriculture Insurance Scheme is being implemented by 24 States and 2 Union Territories. The scheme is demand driven. However, the progress of the scheme can be measured in terms of farmers/area covered, sum insured, premium collected, claims paid and farmers benefitted. During the last eighteen crop seasons (i.e. from Rabi 1999-2000 to Kharif 2008), 1274 lakh farmers have been covered over an area of 2009 lakh hectares insuring a sum amounting to Rs. 135343 crore. Claims to the tune of about Rs. 11596 crore have become payable against the premium income of about Rs. 4076 crore benefiting about 302 lakh farmers.
16. RAINFED FARMING: Approximately 60 percent of the 142 million hectare of cultivated land and 45 per cent of production is under rainfed farming. Therefore, the Government of India has accorded very high priority to the holistic and sustainable development of rainfed areas through an integrated watershed development approach. The National Watershed Development Project for Rainfed Areas (NWDPRA) was launched in 1990-91 in 28 States and two UTs based on the twin concepts of integrated watershed management and sustainable farming systems. It is proposed to develop about 2.31 million hectare in the Plan period covering about 3,783 micro watersheds.
17. DEBT WAIVER AND DEBT RELIEF SCHEME: The Government is fully seized of the serious problem of indebtedness of farmers. Therefore, a scheme of debt waiver and debt relief for farmers was announced by the Government in the Union Budget 2008-09. The scheme has benefitted about 3.68 crore of farmers with total amount of waiver and relief amounting to about Rs.65318.33 crore. Due to the late arrival of monsoon, the Government has decided to extend this period by six months upto 31st December, 2009. Besides this, based on the approval given by the Government of India, the States are implementing a special rehabilitation package of Rs. 16978.69 crore for 31 suicide prone Districts in the four States of Andhra Pradesh, Maharashtra, Karnataka and Kerala.
I am happy to note that this special session is being organised to identify programmes, strategies and partnerships to improve production and quality in the field of processed food, agribusiness and beverages.
You all know that agriculture sector is vital for food security of the country. It is the principal source of livelihood for more than 58% of the population but its contribution to the national GDP is only about 18%. This structural imbalance and mismatch between income generation in the farm sector visa-à-vis and non-farm sector needs to be addressed immediately. I earnestly hope that the deliberations of this session will provide some direction towards this end.
Let me briefly outline the various initiatives taken by the Government for the development of Agriculture sector with special emphasis on famers’ income and inclusive growth:
1. GROWTH RATE: The Government has taken a number of initiatives to give further boost to agricultural sector. While the global economy had been reeling under recession in the last one year and our farmers had been facing vagaries of weather, the average growth rate of agriculture sector was more than 4% during the last 4 years. I am grateful to the farming community of India for sustaining this growth and for providing food security to the nation.
2. MINIMUM SUPPORT PRICE: In order to make agriculture a remunerative vocation on a sustainable basis, substantial increase in the MSP of major cereals ranging from 49% to 78% was provided during the last 5 years. MSPs of pulses & oilseeds were enhanced by up to 83% during the same period.
During the last five years Government has mostly been accepting the recommendations of Commission for Agricultural Costs and Prices (CACP) and in some cases has also announced higher prices along with bonus.
3. OUTLAY FOR AGRICULTURE / INVESTMENT IN AGRICULTURE: As a result of progressive steps taken by the Government during the last 5 years in agriculture & sectors, the declining trend has been reversed, and the share of public investment in Gross Capital Formation in agriculture and allied sectors has been going up. I am glad to inform you that during 2004-05 to 2007-08, the total investment in agriculture increased in the range of 8% to 14.2% per annum. The public sector investment increased faster in the range of 17.6 % to 22.5%. However, this process of investment in agriculture both in public and private sector needs to be accelerated in the coming years.
With a view to increase the investment in agriculture, two major programmes, Rashtriya Krishi Vikas Yojana with a Plan outlay of Rs.25,000 crores and National Food Security Mission with a Plan outlay of about Rs.4900 crores were launched to incentivize investments by the States and the farmers.
4. NATIONAL FOOD SECURITY MISSION (NFSM): Food security at national and at the household level is of paramount importance for this Government. With a view to enhance production of foodgrains to meet increasing demand on account of burgeoning population, National Food Security Mission (NFSM) is being implemented in 312 identified districts of 17 States from Rabi 2007-08. An additional production of 20 million tonnes of foodgrains, comprising 10 million tonnes of rice, 8 million tonnes of wheat and 2 million tonnes of pulses by the end of Eleventh Plan (2011-12) has been targetted.
5. RASHTRIYA KRISHI VIKAS YOJNA (RKVY): Rashtriya Krishi Vikas Yojana is a unique scheme in which the States have been given the responsibility of planning and implementing agriculture and allied sectors (including animal husbandry, dairy and fisheries) related programmes most suited to their regions. It envisages the concept of District Agricultural Plan and State Agricultural Plan thereby giving the required flexibility to the States.
6. NATIONAL HORTICULTURE MISSION (NHM): The National Horticulture Mission is being implemented since the year 2005, with requisite backward and forward linkages and an end-to-end approach covering research, production, post-harvest management, processing and marketing, with active participation of all stakeholders. Since inception of the Scheme, about 12.61 lakh hectares (ha.) area has been brought under new gardens, 2.06 lakh ha. of old senile plantations rejuvenated and Integrated Pest Management/Integrated Nutrient Management has taken up in 5.73 lakh ha. Under the post harvest management component, 1108 Pack Houses, 109 Cold Storage Units, 8 Wholesale Markets and 51 Rural Markets have been set up.
7. MACRO MANAGEMENT OF AGRICULTURE (MMA): Macro Management of Agriculture (MMA) aims at all round development in agriculture through Work Plans prepared by States. MMA Scheme provides the states to choose among various interventions based on the Work Plan finalized in an interactive mode to supplement and complement the States’ efforts in the agriculture sector. Under the scheme, 90% of the outlay is provided by the Central Government.
8. NATIONAL PROJECT ON MANAGEMENT OF SOIL HEALTH AND FERTILITY (NPMSF): In order to promote judicious and balanced use of chemical fertilizers, there is an urgent need for expanding soil testing facilities in the country with a provision for micro-nutrient testing facility. A new Scheme, namely, “National Project on Management of Soil Health and Fertility” (NPMSF) has been introduced during 2008-09 under which 250 mobile & 500 static Soil Testing Labs and 70 Fertilizer Quality Control Labs were established. Upgradation and strengthening of existing labs also is proposed to be done NPMSF.
10. ORGANIC FARMING: We are committed to giving thrust to conservation agriculture to ensure sustainability of production levels while enhancing quality of the output. Therefore, we are promoting use of bio-fertilizers, bio-pesticides, bio-insecticides and organic farming under various components of National Project on Organic Farming and National Horticulture Mission. Due to these efforts of the Government, which have been well received by the farmers, the total certified area under organic farming (including area under conversion) has increased from 42000 ha. in 2003-04 to more than 10 lakh hectares last year.
11. MICRO IRRIGATION: With a view to incentivize efficient use of available water resources, a Centrally Sponsored Scheme on Micro Irrigation was launched in 2006. The use of micro irrigation systems results in increase in crop yield, reduction in fertilizer intake, labour cost etc. Since inception of the Scheme, about 13.49 lakh ha. has been covered under drip and sprinkler system upto March, 2009.
12. EXTENSION ACTIVITIES: Extension activities are essentially in the domain of the State Governments and the Central Government is providing support to their efforts through various programmes. A scheme “Support to State Extension Programme for Extension Reforms” was launched in 2005. An autonomous body Agriculture Technology Management Agency (ATMA) is set up at the district level with active participation of farmers, farmer groups, NGOs, Krishi Vikash Kendras, Panchayati Raj Institutions and other stakeholders operating at district level and below. A total number of 586 rural districts have been covered under the scheme in 27 states and 2 Union Territories. A vast network of 558 Krishi Vigyan Kendras (KVKs) for dissemination of technology through demonstration has been established. Besides this ATMA scheme, 3 more schemes for agriculture extension viz. Agri Clinics and Agri Business Centres, Mass Media Support to Agriculture and Support to Central Institutions are also being implemented.
13. WAREHOUSING AND COLD-CHAIN: It is widely recognized that the investment in warehousing and cold-chain in the country is inadequate. In effect, the investment in this sector has not kept pace with the increase in production both of foodgrains and horticulture. It is also recognized that investment by the private sector in this regard is very important. Therefore, to incentivize investment by the private sector in warehousing and cold-chain the Finance Minister in his budget speech has announced investment-linked tax incentives to the businesses of setting up and operating ‘cold chain’, warehousing facilities for storing agricultural produce and the business of laying and operating cross country natural gas or crude or petroleum oil pipeline network for distribution on common carrier principle. Under this method, all capital expenditure, other than expenditure on land, goodwill and financial instruments will be fully allowable as deduction. With this announcement, it is expected that the warehousing and cold-chain infrastructure in this country will get a boost and the farmers get the benefit of this investment by reducing their losses in handling and transportation. We have also issued guidelines for setting up Terminal Market Complexes in Public Private Partnership (PPP) mode by providing subsidy @ up to 40% of the eligible capital cost with a ceiling of Rs.50 crores per market.
14. CREDIT FLOW: In order to improve the flow of credit and to ameliorate condition of distressed farmers, the Government of India had announced a special farm credit package on 18.06.2004. As a result, total credit flow has increased from Rs.86,981 crores in 2003-04 to Rs.2,87,149 crores in 2008-09 and is further targeted to increase to Rs.3,25,000 crores in 2009-10. In the Budget 2009-10, an additional interest subvention of 1% has been proposed for the farmers who pay their loans in time.
15. CROP INSURANCE: National Agriculture Insurance Scheme is being implemented by 24 States and 2 Union Territories. The scheme is demand driven. However, the progress of the scheme can be measured in terms of farmers/area covered, sum insured, premium collected, claims paid and farmers benefitted. During the last eighteen crop seasons (i.e. from Rabi 1999-2000 to Kharif 2008), 1274 lakh farmers have been covered over an area of 2009 lakh hectares insuring a sum amounting to Rs. 135343 crore. Claims to the tune of about Rs. 11596 crore have become payable against the premium income of about Rs. 4076 crore benefiting about 302 lakh farmers.
16. RAINFED FARMING: Approximately 60 percent of the 142 million hectare of cultivated land and 45 per cent of production is under rainfed farming. Therefore, the Government of India has accorded very high priority to the holistic and sustainable development of rainfed areas through an integrated watershed development approach. The National Watershed Development Project for Rainfed Areas (NWDPRA) was launched in 1990-91 in 28 States and two UTs based on the twin concepts of integrated watershed management and sustainable farming systems. It is proposed to develop about 2.31 million hectare in the Plan period covering about 3,783 micro watersheds.
17. DEBT WAIVER AND DEBT RELIEF SCHEME: The Government is fully seized of the serious problem of indebtedness of farmers. Therefore, a scheme of debt waiver and debt relief for farmers was announced by the Government in the Union Budget 2008-09. The scheme has benefitted about 3.68 crore of farmers with total amount of waiver and relief amounting to about Rs.65318.33 crore. Due to the late arrival of monsoon, the Government has decided to extend this period by six months upto 31st December, 2009. Besides this, based on the approval given by the Government of India, the States are implementing a special rehabilitation package of Rs. 16978.69 crore for 31 suicide prone Districts in the four States of Andhra Pradesh, Maharashtra, Karnataka and Kerala.
Thursday, September 16, 2010
AFRO-SDC partnership
THE PARTNERSHIP OF AFRO-SDC PARNERSHIP FOR DEVELOPMENT AND COOPERATION ON 13TH SEPTEMBER, 2010 AT 1430 HOURS.
Address of Prof. K.V. Thomas, Hon. Minister of state for Agriculture, Consumer Affairs, Food and Public Distribution
I am extremely pleased to be with all of you in this event to commemorate the AFRO-SDC partnership and stock taking of the challenges ahead in water and food security. In the past, the AFRO –SDC partnership has shown us the way in large number of micro interventions in streamlining our governance of natural resources . The watershed programmes of the early eighties, the development of the India Mark II hand pumps-later promoted by the UNICEF and the vulnerability analysis of adaptations to climate change in semi urban areas of India attempted to get answers to climate change impact in rural areas based on conservation, strengthening and value addition of the resource base.
The documentation of the learning’s of three decades titled ‘Winged Seeds’ is now released. It represents various models from the well tested interventions adopted as a larger initiative by the community. It is heartening to see communities have adopted such practices since and they have spread across the country with the contribution from a large number of civil society organisations and Government Departments.
Friends, today we are discussing water and food security in a changing climate. The issue of food and water security of large country like India is a global concern with a population which might stabilise shortly. The demand on all our natural resources to feed, house and productively employ the largest national population in the World will increase substantially. Our food production has to increase to around 300 million tonnes per annum from the present 200 plus. This involves, in the conventional sense, high dependence on water both surface and ground, fertilisers, mechanisation and other intensification of inputs.
The model in which we have successfully employed in the first phase of green revolution in the North Western part of India has provided a reasonable amount of food security in terms of grains. However, the country continues to be short of pulses and other protein based nutrients . Unless an ecologically sensitive production pattern is adopted by all the States and regions which have potential and insurmountable challenge. India cannot hope to afford import of large quantity of any major food item as it will push up the prices in the rest of the world as well as create physical shortages in poorer countries. This increase in production, therefore, has to be managed in a more regionally balanced and participatory manner. It has to be provided for by water resources without damaging the resource base. Fertilisers have to be adopted, without polluting the water resources, sustainably and improving farm mechanisation without a huge draw on fossil fuels. This is a major development challenge which we cannot overcome without high degree of participation and technology break throughs. One of the technologies in the horizon is clearly the applicability of second generation genetic technology involving genetically modified crops.
The ecological impact of genetically modified organisms in the country are being evaluated under the various phases of trials. I have a feeling that we need to attain more clarity in this aspect and have a clearer approach to involve G.M crops as well in our overall strategy. If we fail to tap the productivity revolution which flows from rationalisation of inputs and optimization of input technologies, there is every chance that India could face problems in feeding its fast increasing population.
The other imperative before the country is to reach the poor effectively with the food production it achieves. The country has a subsidised distributive regime using the public distribution system. Various options are being discussed in policy circles to improve the access of the poor to this basic life-line. Many stakeholders and even the judiciary are concerned on the malnutrition levels of children below the age of 5 years and the rural population in general. There is a feeling that the subsidy deployed to run the food subsidy system at the grass root level is not adequately reaching the needy despite our best efforts. At present, recalculated the estimations show that 37 per cent of the Indian population are poor. In some rural areas it may be 42 per cent.
Whatever the contours of the Food Security Act are, the poor would have to be reached with substantially subsidised grains supplies using a transparent system which minimises the arbitrage loses. Various options like smart electronic cards are being considered at the moment to avoid the diversionary loses. While the poor need to be supplied with cheaper grains we have to take adequate precautions that two calamities do not occur out of this.
First the degree of subsidisation should not render farming un productive whereby the farmer is denied of a competitive price, exists farming and the overall production suffers.
Second the mechanism of delivery of the subsidy should not result in large grain diversions from subsidised to non-subsidised regions or in the open market where it commands higher prices.
This I feel is the crux of the matter. The instrument which we use to establish the Food Security Act must have adequate safe guards whereby sometimes conflicting objectives are reconciled. Without systematically revamping the distribution network involving the strength of the retail sector and improving the storage potential, India cannot hope to achieve its targets in food security. It goes without saying that overall improvement in agricultural productivity with minimal environmental backlash is the primary factor which will determine this as nothing can substitute adequate production of grains and other essentials in controlling the prices in the market. Sustainable larger production is the only way in which larger access can be ensured for the relatively poorer population towards kitchen essentials.
I am sure that the panellists on today’s’ discussion would discuss further and I would be happy to hear about your ideas in the matter. I am keen to look into the AFRO-SDC projects in Rajasthan and Andhra Pradesh where the setting up of mini Agro-met observatories and making available timely agricultural metrological advisories to farmers, water banks, Improved Chulas etc. are contributing innovatively to the welfare of the farming population.
I would certainly ask the Indian Council for Agricultural Research to have this initiative assessed and to be used in their Krishi Vigyan Kendra network for scaling up across the country. I wish you all a successful and satisfactory discussion and I look forward to receiving further details and an action oriented road map from the Seminar.
Thank for inviting me here today.
JAI HIND.
Address of Prof. K.V. Thomas, Hon. Minister of state for Agriculture, Consumer Affairs, Food and Public Distribution
I am extremely pleased to be with all of you in this event to commemorate the AFRO-SDC partnership and stock taking of the challenges ahead in water and food security. In the past, the AFRO –SDC partnership has shown us the way in large number of micro interventions in streamlining our governance of natural resources . The watershed programmes of the early eighties, the development of the India Mark II hand pumps-later promoted by the UNICEF and the vulnerability analysis of adaptations to climate change in semi urban areas of India attempted to get answers to climate change impact in rural areas based on conservation, strengthening and value addition of the resource base.
The documentation of the learning’s of three decades titled ‘Winged Seeds’ is now released. It represents various models from the well tested interventions adopted as a larger initiative by the community. It is heartening to see communities have adopted such practices since and they have spread across the country with the contribution from a large number of civil society organisations and Government Departments.
Friends, today we are discussing water and food security in a changing climate. The issue of food and water security of large country like India is a global concern with a population which might stabilise shortly. The demand on all our natural resources to feed, house and productively employ the largest national population in the World will increase substantially. Our food production has to increase to around 300 million tonnes per annum from the present 200 plus. This involves, in the conventional sense, high dependence on water both surface and ground, fertilisers, mechanisation and other intensification of inputs.
The model in which we have successfully employed in the first phase of green revolution in the North Western part of India has provided a reasonable amount of food security in terms of grains. However, the country continues to be short of pulses and other protein based nutrients . Unless an ecologically sensitive production pattern is adopted by all the States and regions which have potential and insurmountable challenge. India cannot hope to afford import of large quantity of any major food item as it will push up the prices in the rest of the world as well as create physical shortages in poorer countries. This increase in production, therefore, has to be managed in a more regionally balanced and participatory manner. It has to be provided for by water resources without damaging the resource base. Fertilisers have to be adopted, without polluting the water resources, sustainably and improving farm mechanisation without a huge draw on fossil fuels. This is a major development challenge which we cannot overcome without high degree of participation and technology break throughs. One of the technologies in the horizon is clearly the applicability of second generation genetic technology involving genetically modified crops.
The ecological impact of genetically modified organisms in the country are being evaluated under the various phases of trials. I have a feeling that we need to attain more clarity in this aspect and have a clearer approach to involve G.M crops as well in our overall strategy. If we fail to tap the productivity revolution which flows from rationalisation of inputs and optimization of input technologies, there is every chance that India could face problems in feeding its fast increasing population.
The other imperative before the country is to reach the poor effectively with the food production it achieves. The country has a subsidised distributive regime using the public distribution system. Various options are being discussed in policy circles to improve the access of the poor to this basic life-line. Many stakeholders and even the judiciary are concerned on the malnutrition levels of children below the age of 5 years and the rural population in general. There is a feeling that the subsidy deployed to run the food subsidy system at the grass root level is not adequately reaching the needy despite our best efforts. At present, recalculated the estimations show that 37 per cent of the Indian population are poor. In some rural areas it may be 42 per cent.
Whatever the contours of the Food Security Act are, the poor would have to be reached with substantially subsidised grains supplies using a transparent system which minimises the arbitrage loses. Various options like smart electronic cards are being considered at the moment to avoid the diversionary loses. While the poor need to be supplied with cheaper grains we have to take adequate precautions that two calamities do not occur out of this.
First the degree of subsidisation should not render farming un productive whereby the farmer is denied of a competitive price, exists farming and the overall production suffers.
Second the mechanism of delivery of the subsidy should not result in large grain diversions from subsidised to non-subsidised regions or in the open market where it commands higher prices.
This I feel is the crux of the matter. The instrument which we use to establish the Food Security Act must have adequate safe guards whereby sometimes conflicting objectives are reconciled. Without systematically revamping the distribution network involving the strength of the retail sector and improving the storage potential, India cannot hope to achieve its targets in food security. It goes without saying that overall improvement in agricultural productivity with minimal environmental backlash is the primary factor which will determine this as nothing can substitute adequate production of grains and other essentials in controlling the prices in the market. Sustainable larger production is the only way in which larger access can be ensured for the relatively poorer population towards kitchen essentials.
I am sure that the panellists on today’s’ discussion would discuss further and I would be happy to hear about your ideas in the matter. I am keen to look into the AFRO-SDC projects in Rajasthan and Andhra Pradesh where the setting up of mini Agro-met observatories and making available timely agricultural metrological advisories to farmers, water banks, Improved Chulas etc. are contributing innovatively to the welfare of the farming population.
I would certainly ask the Indian Council for Agricultural Research to have this initiative assessed and to be used in their Krishi Vigyan Kendra network for scaling up across the country. I wish you all a successful and satisfactory discussion and I look forward to receiving further details and an action oriented road map from the Seminar.
Thank for inviting me here today.
JAI HIND.
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